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BOULDER, Colo. – As major utilities across the Interior West forecast staggering energy demands in the next 10 years — largely driven by the increased development of data centers — utilities, regulators and elected leaders must evaluate and adopt policies that advance clean energy, protect electricity customers and mitigate impacts on water resources, according to a report released today by Western Resource Advocates.

Major electric utilities in the Interior West — where WRA works to transition the power sector to clean energy — are collectively forecasting a massive increase in energy demand of more than 50% in the next decade alone. The growth projected in just the next five years surpasses the current system of electricity production – that took a century or more to build.

Data centers require tremendous amounts of energy — both for computing and cooling to protect the computer hardware contained within. If the projections of data center load growth from the region’s major utilities become reality, these new facilities in Arizona, Colorado, Nevada, New Mexico and Utah could have annual water use of 21,600 acre-feet (7 billion gallons) by 2035. This amount of water serves the annual needs of up to 194,000 people.

In WRA’s new report — Data Center Impacts in the West: Policy Solutions for Water and Energy Use — energy and water experts from WRA present a summary of the electricity load forecast for data centers in the region along with the potential water impacts. Robust regulatory policies can protect customers, ensure water resources are conserved and spur investment in clean, innovative technologies. This report’s key recommendations are focused on three main categories: advancing clean energy, preserving scarce water resources, and protecting electricity customers.

“Decision makers must respond to the immediate challenge of meeting data centers’ burgeoning energy and water demands, while also building policies that ensure data centers accelerate progress toward energy, water, and climate goals over the long term,” said Kapiloff. “With smart policy solutions, there are opportunities to power data  centers with renewable resources and sustainable water use practices. Now is the time to get it right.”